The Chefs' Warehouse (CHEF) AI Stock Analysis

• Market Cap: $2.39B
• Dividend Yield: N/A
• Average Volume (3M): 491.49K
• Price to Earnings (P/E): 36.2
• Beta (1Y): 1.33
• Revenue Growth: 7.90%
• EPS Growth: 68.05%
• Country: US
• Employees: 5,029
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Food Distribution
• EPS (TTM): 0.50
• Shares Outstanding: 40,762,657
• 10 Day Avg. Volume: 351,551
• 30 Day Avg. Volume: 491,488
• PEG Ratio: 0.88
• Price to Book (P/B): 3.43
• Price to Sales (P/S): 0.49
• P/FCF Ratio: 17.82
• Enterprise Value/Market Cap: 1.57
• Enterprise Value/Revenue: 1.29
• Enterprise Value/Gross Profit: 5.33
• Enterprise Value/Ebitda: 25.26
• 1Y Price Target: $75.33
• Price Target Upside: 20.82% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 6

• Rating: 64 Neutral
• Price Target: $63.00 ▲(1.04% Upside)

The Chefs' Warehouse receives a moderate score due to strong earnings call performance and positive financial growth. However, high leverage, declining free cash flow, and overvaluation concerns weigh on the overall score. The technical analysis suggests a lack of strong momentum, further impacting the stock's attractiveness.

Positive Factors

Revenue Growth

Strong revenue growth indicates robust demand and effective market penetration, supporting long-term business expansion and stability.

Strategic Acquisitions

Strategic acquisitions enhance market reach and product offerings, strengthening competitive positioning and fostering sustainable growth.

Raised Financial Guidance

Increased financial guidance reflects management's confidence in future performance, driven by strong operational execution and market opportunities.

Negative Factors

High Leverage

High leverage can limit financial flexibility and increase risk, potentially impacting the company's ability to invest in growth opportunities.

Declining Free Cash Flow

Declining free cash flow may constrain future investments and operational flexibility, affecting long-term growth and financial health.

Low EBIT and EBITDA Margins

Low margins suggest potential inefficiencies and limited profitability, which could hinder the company's ability to compete and invest in growth.

The Chefs' Warehouse Business Overview & Revenue Model

Company Description

The Chefs' Warehouse, Inc., together with its subsidiaries, engages in distribution of specialty food products in the United States and Canada. The company's product portfolio includes approximately 50,000 stock-keeping units, such as specialty food products, such as artisan charcuterie, specialty cheeses, unique oils and vinegars, truffles, caviar, chocolate, and pastry products. It also offers a line of center-of-the-plate products, including custom cut beef, seafood, and hormone-free poultry, as well as food products, such as cooking oils, butter, eggs, milk, and flour. The company serves menu-driven independent restaurants, fine dining establishments, country clubs, hotels, caterers, culinary schools, bakeries, patisseries, chocolatiers, cruise lines, casinos, and specialty food stores. It markets its center-of-the-plate products directly to consumers through a mail and e-commerce platform. The company was founded in 1985 and is headquartered in Ridgefield, Connecticut.

How the Company Makes Money

The Chefs' Warehouse generates revenue primarily through the distribution of specialty food products to restaurants, hotels, and other foodservice businesses. Its revenue model is based on the wholesale distribution of high-quality ingredients and culinary products, which are sold directly to customers. The company also benefits from strategic partnerships with local and national suppliers, allowing it to offer an extensive product range. Additionally, The Chefs' Warehouse may leverage logistics and delivery services to enhance customer satisfaction and retention, further contributing to its earnings.

The Chefs' Warehouse Financial Statement Overview

Summary

The Chefs' Warehouse demonstrates solid revenue growth and improving profitability, with stable gross margins. However, high leverage and declining free cash flow present potential risks. The company should focus on enhancing operational efficiencies and managing debt levels to strengthen its financial position.

Income Statement

The Chefs' Warehouse has shown consistent revenue growth, with a TTM revenue growth rate of 2.07%. Gross profit margin is stable at around 24%, indicating efficient cost management. The net profit margin has improved to 1.76%, reflecting better profitability. However, the EBIT and EBITDA margins are relatively low at 3.58% and 4.94%, respectively, suggesting room for operational efficiency improvements.

Balance Sheet

The company's debt-to-equity ratio is high at 1.67, indicating significant leverage, which could pose financial risks. However, the return on equity has improved to 13.14%, showing effective use of equity to generate profits. The equity ratio stands at 29.24%, suggesting a moderate level of equity financing.

Cash Flow

The operating cash flow to net income ratio is 0.39, indicating moderate cash generation from operations. Free cash flow has declined by 6.89%, which could impact future investments. The free cash flow to net income ratio is 0.74, showing a reasonable conversion of net income to free cash flow.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	2.92B	3.79B	3.43B	2.61B	1.75B	1.11B
Gross Profit	705.08M	914.15M	814.47M	618.64M	390.49M	248.15M
EBITDA	148.73M	193.14M	156.55M	125.71M	47.18M	-68.69M
Net Income	45.63M	55.48M	34.59M	27.75M	-4.92M	-82.90M
Balance Sheet
Total Assets	1.91B	1.86B	1.71B	1.51B	1.07B	974.33M
Cash, Cash Equivalents and Short-Term Investments	96.87M	114.66M	49.88M	158.80M	115.16M	193.28M
Total Debt	930.04M	915.83M	926.27M	832.77M	542.48M	530.48M
Total Liabilities	1.35B	1.32B	1.25B	1.10B	723.58M	629.74M
Stockholders Equity	557.72M	537.65M	454.67M	401.51M	350.21M	344.59M
Cash Flow
Free Cash Flow	53.57M	103.56M	4.21M	-22.71M	-58.70M	35.84M
Operating Cash Flow	83.90M	153.06M	61.64M	23.13M	-19.90M	42.88M
Investing Cash Flow	-30.33M	-49.82M	-179.31M	-232.02M	-48.99M	-67.97M
Financing Cash Flow	-59.11M	-38.48M	9.01M	253.22M	-9.22M	78.06M

The Chefs' Warehouse Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 62.35
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CHEF, the sentiment is Positive. The current price of 62.35 is above the 20-day moving average (MA) of 57.78, above the 50-day MA of 60.92, and above the 200-day MA of 59.83, indicating a bullish trend. The MACD of -0.12 indicates Negative momentum. The RSI at 62.35 is Neutral, neither overbought nor oversold. The STOCH value of 53.94 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CHEF.

The Chefs' Warehouse Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SYY	―	$36.31B	20.34	84.89%	2.83%	2.92%	-4.06%
PFGC	―	$15.42B	45.23	7.91%	―	8.61%	-22.16%
USFD	―	$16.45B	31.22	11.48%	―	5.32%	11.65%
CHEF	―	$2.39B	36.17	13.64%	―	7.90%	68.05%
Sector *	―	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
SPTN	―	―	―	―	―	1.54%	-134.75%
UNFI	―	$2.32B	―	-7.39%	―	2.60%	-3.23%

The Chefs' Warehouse Corporate Events

The Chefs’ Warehouse Reports Strong Q2 2025 Results

The Chefs’ Warehouse, Inc. is a leading distributor of specialty food products, serving chefs and culinary professionals across the United States, the Middle East, and Canada. The company focuses on providing high-quality products to independent restaurants, fine dining establishments, and other food service venues.

Chefs’ Warehouse Reports Strong Q2 Growth and Raises Guidance

Chefs’ Warehouse Inc. recently reported a robust performance in its second-quarter earnings call, showcasing significant growth in net sales, gross profit, and adjusted EBITDA. Despite facing challenges such as inflation and strategic attrition in Texas, the company expressed confidence by raising its full-year guidance, signaling optimism for continued growth and profitability.